Inheritance Tax is the tax that is paid on your 'estate'. Broadly speaking this is everything you own at the time of your death, less what you owe. It is also sometimes payable on assets you may have given away during your lifetime. Assets include things like property, possessions, money and investments but can sometimes include other assets or ‘interests’.

Not everyone pays Inheritance Tax on death. It only applies if the taxable value of your estate (including your share of any jointly owned assets and assets held in some types of trusts) when you die is above £312,000 (2008/2009 tax year). It is only payable on the excess above this nil rate band.

There are also a number of exemptions which allow you to pass on amounts (during your lifetime or in your will) without any Inheritance Tax being due.

Inheritance Tax is an area requiring specialist advice to avoid many of the pitfalls, please contact us to arrange a complementary assessment of your likely estate position.  

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